The idea that the economy must be embedded in the normative order of society underlay the whole political economy of classical authors around Adam Smith, John Stuart Mill and Thomas Robert Malthus… In the current debate, there is a great chance to develop a new economic model…
High growth rates based on excessive debts and virtual speculation cycles are jointly responsible for financial and economic crises like the present crisis with fatal consequences for the real economy like the loss of thousands of jobs, social insecurity and de-stabilization… Is an economic system conceivable that need not grow or must grow differently and nevertheless can guarantee social prosperity, economic stability, job efficacy and ecological compatibility?
Economic structures that form the basis for social prosperity have become dysfunctional. The financial markets have expanded their original function and are now self-financed markets in which protection from risks has become itself a highly speculative business… Given its uncoupling from the real economic output, the necessity of a global framework regulating the financial markets and assigning a “serving” function to them is urgent.
to read Cordula Drautz’ 2010 article “New Economy and New Prosperity,” click on